Category: Forex Signals

The robust selling bias encompassing the greenback drove the USD/CHF pair to recent lows during the European session. The sellers are now eyeing to test the support mark of 0.9400 and even lower. The di[ in the USD/CHF pair was exclusively sponsored by the emergence of some recent selling bias in the U.S. dollar, which was pressed down the demand for USD/CHF pair/

The risk sentiment initially got some support from the latest optimism about a potential coronavirus vaccine, which overshadowed concerns about surging COVID-19 cases in most countries. Although, the hopes of vaccine success increased after Moderna’s potential vaccine produced a “robust” immune response in all 45 patients in its early-stage human trials, providing more promising data that the vaccine may give some protection against the coronavirus. Dr. Anthony Fauci, the leading expert on infectious diseases in the U.S., also joined optimism while saying that the country will meet its goal regarding COVID-19 vaccine by year’s end, spurring hopes of an economic recovery.

At the US-China front, the long-lasting tussle between the world’s top two economies continuously increasing day by day as the U.S. policymakers were set to levy heavy sanctions on China’s ruling party members. As per the White House Chief of Staff, Mark Meadows, the Trump administration is studying national security risks of TikTok, WeChat, and other apps that allow a foreign adversary to gather information on users. However, these interfacing concerns about worsening US-China relations formed some safe-haven flows towards the Japanese yen and contributed to the currency pair declines.

Despite the worries about the second wave of the coronavirus infections and the better-than-expected U.S. macro releases, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. However, the losses in the U.S. dollar could be attributed to the uptick in the U.S. stock futures. However, the declines in the U.S. dollar kept the currency pair lower. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.07% to 96.250 by 9:55 PM ET (2:55 AM GMT).


Considering the increase save haven appeal amid increased COVID19 cases and weakness in the U.S. dollar, the USD/CHF pair faces intense bearish pressure. The hybrid of ll bearish fundamentals has driven a sharp selling bias in the USD/CHF pair. Besides, the USD/CHF pair had violated the ascending triangle pattern on the lower side, which lead it’s prices further lower until 0.9400 level. The 50 EMA suggests selling around 0.9435, while the RSI and MACD are also in support of bearish bias. Check out a quick trade plan below.

Entry Price – Sell 0.94431

Stop Loss – 0.94831

Take Profit – 0.94031

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

The safe-haven-metal prices unchanged above the $1810 level and erased some of its gains on the day, mainly due to the modest upbeat market sentiment backed by the continued hopes of a COVID-19 vaccine. However, the yellow-metal losses could be short-lived as worsening of the virus situations in America and Japan not showing any sign of slowing down.

On the other hand, the broad-based U.S. dollar took fresh bids on the day mainly driven by the concern about worsening U.S.-China relations over the control of advanced technologies and the protection of civil liberties in Hong Kong, which became a key factor that kept the gold prices under pressure. The yellow metal price is trading at 1,808.88 and consolidating in the range between 1,808.32 – 1,813.47. However, traders seem cautious to place any strong position ahead of the U.S. key data.

The modest upbeat market sentiment could be associated with the recent reports that U.S. President Donald Trump privately refrained from imposing further sanctions against Chinese entities involved in enacting Hong Kong’s national security law while saying that he does not want to aggravate tensions with China further. Despite Trump’s positive comments, the tensions remain on the cards as China threatening to retaliate after Trump also stripped Hong Kong of its special trading privileges and signed an executive order for initial sanctions on Tuesday.

On the negative side, the market sentiment took a hit as Shares in China declined 1.06%, and Australian stocks dropped 0.22% after the country’s jobless rate jumped to the highest since the late 1990s. Shares in Hong Kong and Seoul also fell. Wheres, the second wave of coronavirus infections, is also triggering a return to restrictions on business activity that threaten economic growth.

Despite the continued surge in the number of coronavirus cases globally and the ongoing Sino-American conflict, the market traders cheered the optimism concerning the COVID-19 vaccine, which was triggered after the upbeat signals form Moderna and U.S. President Donald Trump’s comment concerning the COVID-19 vaccine. Dr. Anthony Fauci, the leading expert on infectious diseases in the U.S., also hinted that the country would meet its goal regarding COVID-19 vaccine by year’s end, spurring hopes of an economic recovery.

Apart from this, Russia also completed early-stage trials of a COVID-19 vaccine, which also add some strength to the upbeat sentiment developed by the First Moscow State Medical University and the Main Military Clinical Burdenko Hospital, the vaccine reported optimistic preliminary results on Wednesday.

Considering the worse situation of ever-increasing coronavirus numbers and an ongoing tussle between the US-China, witnessed by the 0.5% decline in the S&P 500 futures, the broad-based U.S. dollar gained positive traction and took bids on the day as investors turn towards the safe-haven asset. However, the U.S. gains kept the gold prices lower as the price of gold is inversely linked to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.01% to 96.032 by 10:12 PM ET (3:12 AM GMT).

Moving ahead, the yellow metal could continue to trade in confined range heading into the key U.S. Retail Sales release. Whereas, the smaller-than-expected rise in the data could further depress the market mood and weigh on the global stocks and accelerate the recovery momentum in the U.S. dollar, which could keep the gold prices under pressure. However, the bearish trend in the gold could be short-lived amid looming virus risks and US-China escalation.

The gold may trade with a bearish bias below the 1807 resistance level. The 50 EMA and MACD are supporting selling bias in gold. While the gold may face a hard time to violate the 1801 support level. Here’s a quick trade plan to follow.

Entry Price – Sell 1805.48

Stop Loss – 1810.48

Take Profit – 1800.48

Profit & Loss Per Standard Lot = -$500/ +$500

Profit & Loss Per Micro Lot = -$50/ +$50

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

The GBP/USD currency pair extended its early-day losses and took offers below the mid-1.2600 level while represented 0.41% losses on the day mainly due to downbeat trading sentiment underpinning the broad-based U.S. dollar contributed to the currency pair losses.

On the other hand, the better-than-expected U.K. monthly employment detail further extended some support to the British pound and helped the currency pair limit its deeper losses. Whereas, China’s latest warnings to the U.K. over the Huawei ban matter also exerted some downside pressure on the British pound. Currently, the GBP/USD currency pair is currently trading at 1.2536 and consolidating in the range between 1.2527 – 1.2594.

It is worth reporting that the Office for National Statistics (ONS) showed on Thursday that the official U.K. unemployment rate remained unchanged at 3.9% for May compared to 4.2% expected. The claimant count change showed an unexpected decrease last month.

At the data front, The number of people claiming jobless benefits declined by 28.1K in June, against expectations +250K and +528.9K seen previously. The claimant count rate eased to 7.3% vs. 7.8% last.

In the meantime, the U.K.’s average weekly earnings, excluding bonuses, arrived at +0.7% 3Mo/YoY in May versus +1.7% last and +0.5% expected while the gauge including bonuses came in at -0.3% 3Mo/YoY in May versus +1.0% previous and -0.4% expected.

The latest optimism over a potential vaccine for the highly contagious coronavirus disease was recently overshadowed by China’s latest warnings to the U.S. after the U.S. sanctions on Beijing’s diplomats. In the meantime, the U.S. is also considering imposing a travel ban on Chinese Communist Party members, which is likely to prompt sharp retaliation.

On the positive side, the market traders cheered the optimism concerning the COVID-19 vaccine, which was triggered after the upbeat signals form Moderna. As well as, Dr. Anthony Fauci, the leading expert on infectious diseases in the U.S., also hinted on Wednesday that the country will meet its goal regarding COVID-19 vaccine by year’s end, spurring hopes of an economic recovery. Apart from this, Russia also completed early-stage trials of a COVID-19 vaccine, which provided some support to the risk-tone and helped limit deeper losses.


The GBP/USD was trading in line with our forecast and was near to hit our take profit, but unfortunately, the release of worse than expected U.S. jobless claims triggered bullish bias in the pair. The idea was to stay in a sell position below 1.2575 level as this was support become resistance level for Sterling. Besides, the MACD, RSI, and 50 EMA were also in support of selling. Anyhow, the market has already closed our position at the stop. For now, you should keep an eye on the 1.2600 level to take a selling trade in GBP/USD

Entry Price – Sell 1.2546

Stop Loss – 1.2586

Take Profit – 1.2506

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

The AUD/USD currency pair extended its early-day recovery moves and rose to a session high around the 0.6945-56 region. However, the bullish bias in the currency pair could be attributed to the upbeat China trade data, which showed the unexpected jump in the imports and exports. On the other hand, the risk-on market sentiment backed by the multiple factors undermined the perceived riskier Australian dollar. It kept a lid on any additional gains in the currency pair. The broad-based U.S. dollar bullish bias triggered by the rise in the U.S. bond yields also capped the further upside move in the currency pair.

For the month of June, trade figures from China suggested that the world’s largest commodity player, including the key customer of Australia, gained further momentum in its post-coronavirus (COVID-19) recoveries, witnessed by the fresh report that showed the Exports and Imports crossed the previous +1.4% and -12.7% figures with fresh +4.3% and +6.2% marks respectively.

However, the currency pair gains could also be attributed to the National Australia Bank’s (NAB) Business Confidence and Business Conditions upbeats numbers for June, which initially boosted the riskier Australian dollar and contributed to the pair’s gains. At the data front, the NAB Business Conditions recovered from -24 prior and -39 forecast to -7, whereas Business Confidence rose beyond -87 expected and -20 previous to +1.

On the other hand, the increasing cases of coronavirus in Australia’s most populous states and 35 states of the United States overshadowed the prospects of V-shaped global economic recovery. As in result, Australia’s Prime Minister decided to re-impose lockdown and border restrictions to contain the spread of coronavirus cases, which exerted some downside pressure on the Aussie currency and limited the pair’s gains.

The number of COVID-19 cases globally passed the 13 million mark as of July 14, according to Johns Hopkins University data, with more than 565,000 people died in the last 7-months due to the virus. On the other hand, Brazil and India also followed the footstep of the U.S. They became nations with the 2nd highest number of appearing cases after the U.S. Elsewhere, the figures from Australia, and some parts of Asia were also increasing day by day.

However, the gloomy outlook was further bolstered by the ongoing tussle between the United States and China. The conflict between both parties was further fueled after the Trump administration rejected China’s territorial claims in the South China Sea. The U.S. Secretary of State Mike Pompeo blamed China for threatening other claimant states in the South China Sea. As in result, the Dragon Nation also fired shots on the United States while saying that the U.S. was trying to inflame tensions in the disputed waters.

Although, the US-China tussle got an additional pace after China showed a willingness to impose new sanctions on the U.S.’ defense company, Lockheed Martin, in response to planned arms sales to Taiwan. Let us recall, Dragon Nation previously announced tit-for-tat sanctions on four U.S. officials, including senators Ted Cruz and Marco Rubio in response to Washington’s imposed visa restrictions on Chinese officials over the treatment of the Uyghur community in the northwestern province of Xinjiang. These headlines favored the risk-off market sentiment and kept the currency pair restricted.

As per the latest statement, Japanese Economy Minister Yasutoshi Nishimura said that his government could declare an emergency if infections grew further. Besides, the number of COVID-19 infections has spiked in the past week, with Tokyo reporting more than 200 cases for three straight days. However, these above headlines added further strength to the risk-off market mood.


The AUD/USD is trading in between the sideways trading range of 0.6969 to 0.6925, while a bullish breakout of 0.6969 will help determine the next pair’s movement. On the higher side, the AUD/USD pair may find the next resistance at 0.6995 as soon as 0.6969 gets violated. The MACD and RSI are heading into a bullish zone, and these are supporting the bullish bias in pair. Here’s a trade plan below…

Entry Price – Buy 0.69468

Stop Loss – 0.69068

Take Profit – 0.69868

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

During Tuesday’s early European trading session, the USD/CAD currency pair succeeded extend its previous 4-day winning streak and hit the session high just above 1.3600 level mainly due to the broad-based U.S. dollar strength backed by the downbeat trading sentiment. On the other hand, the reason for the currency pair gains could also be attributed to the weaker oil prices, which eventually undermined the demand for the commodity-linked currency the loonie and contributed to the currency pair gains. At the moment, the USD/CAD currency pair is currently trading at 1.3622 and consolidating in the range between 1.3596 – 1.3646.

Considering the overall market condition, the investors seemed cautious about the ever-increasing number of coronavirus cases globally and the probability of renewed lockdowns restrictions to control the spread, which eventually overshadowed the prospects for a sharp V-shaped global economic recovery. Detail suggests that the number of COVID-19 cases globally passed the 13 million mark as of July 14, according to Johns Hopkins University data, with more than 565,000 people died in the last 7-months due to the virus, as Global institute reports’ tally.

On the other hand, Brazil and India also followed the U.S. footstep. They became nations with the 2nd highest number of appearing cases after the U.S. Elsewhere, the figures from Australia and some parts of Asia were also increasing day by day.

Apart from the Virus woes, the tussle between the U.S. and China over Hong Kong security law remained on the card. It is worth reporting that the U.S. State Department rejected China’s territorial claims in the South China Sea. The U.S. Secretary of State Mike Pompeo blamed China for threatening other claimant states in the South China Sea. As in result, the Dragon Nation also fired shots on the United States while saying that the U.S. was trying to inflame tensions in the disputed waters.

Whereas, the US-China tussle got any additional pace in the last hour after China decided to impose new sanctions on the U.S.’ defense company, Lockheed Martin, in response to planned arms sales to Taiwan. It is worth recalling that the Dragon Nation previously announced tit-for-tat sanctions on four U.S. officials, including senators Ted Cruz and Marco Rubio in return to Washington’s imposed visa restrictions on Chinese officials over the treatment of the Uyghur community in the northwestern province of Xinjiang. These headlines favored the risk-off market sentiment and kept the currency pair gains restricted.

As in result, the broad-based U.S. dollar reported gains and took bids on the day as investors preferred the safe-haven asset mainly due to concerns about the mounting coronavirus cases. However, the gains in the U.S. dollar kept the pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.03% to 96.537 by 9:36 AM ET (2:36 AM GMT).

At the crude oil front, the WTI crude oil prices remain under strong selling pressure. However, the decline in crude oil could be attributed to the risk-off market sentiment triggered by record-breaking new coronavirus cases in several U.S. states, which eventually overshadowed concern about economic recovery. The bearish trend in crude oil was further bolstered by the expectations that OPEC+ might ease output cuts, which led to a sharp fall in oil prices.

On the technical front, the USD/CAD is testing the double top resistance level of 1.3627 level and closing of candles below this level can drive selling while closing above this can trigger buying trend in the market. We have already opened a sell trade below 1.36131 and the idea is to target 1.35731 take profit today. Good luck

Entry Price – Sell 1.36131

Stop Loss – 1.36531

Take Profit – 1.35731

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

The EUR/USD currency pair extended its early-day gains and rose further to 1.1290 level ahead of the much-awaited negotiations on the European Union’s (EU) long-term budget. However, the modest gains in the currency pair were supported by the hopes of a recovery package from the European Council president Charles Michel.

On the other hand, the downbeat German Industrial data, as well as the gloomy European Commission’s economic forecasts, become the key factors that kept a lid on any additional gains in the currency pair. Whereas, the broad-based US dollar strength backed by the risk-on market sentiment also exerted some downside pressure on the currency pair. Moreover, the rising number of coronavirus cases weighed on the European equities which undermined the shared currency.

The nervous mood in the European stock futures could be associated with the dovish comments made by the European Commission that “the EU economy will experience a deep recession this year due to the coronavirus pandemic, despite the swift and comprehensive policy response at both EU and national levels.” However, these discouraging EU economic forecasts continue to weigh on the EUR/USD pair.


The EUR/USD is trading above a strong support level of 1.1265 level, and closing the Doji and bullish engulfing candle above this level may drive the buying trend in the EUR/USD pair. On the higher side, the next resistance is likely to be found around the 1.1303 level. But in case, the pair violates 1.1265 support, the next support is likely to stay around 1.1225 level.

Entry Price – Buy 1.12889

Stop Loss – 1.12489

Take Profit – 1.13289

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

The safe-haven metal prices failed to gain any positive traction and hit the intraday low of $1,770 level while represented 0.20% declines. The downward movement of gold was mainly due to the risk-on market sentiment in the wake of upbeat vital data from the U.S. and China, which undermined the safe-haven demand in the market. On the other hand, the broad-based U.S. dollar weakness helped limit any additional losses for the yellow metal. Whereas, the Pandemic fears and geopolitical tensions exerted some downside pressure on the risk sentiment and capped further losses in gold. At the moment, the yellow metal prices are currently trading at 1,772.67 and consolidating in the range between 1,770.18 and 1,776.91.

At the coronavirus front, almost 15 states of the U.S. have reported a record hike in new cases of COVID-19, which has infected approximately 3 million people in the U.S. and killed about 130,000 so far. It is worth mentioning that Texas registered the record high coronavirus figures for seven consecutive days. Moreover, no progress came out of the virus vaccine.

Despite this, U.S. President Donald Trump did not give any major attention to the latest surge in the coronavirus (COVID-19) numbers, which also contributed to the risk sentiment. On the negative side, the geopolitical tension between the United States and China remained on the card, as well as, China’s tussle with India, and some of the developed economies also weighed on the risk sentiment and gave some support to the yellow-metal traders.

Apart from this, the U.S. President Donald Trump was still considering two or three actions against China, with a high probability, in the wake of passing the Hong Kong security law. As per the White House administration official, “Something could be revealed soon, more likely in days than weeks”. In the meantime, the United States recently sent two aircraft carriers to the South China Sea for exercise as China holds drills, which recently challenged the current risk-on sentiment.

The broad-based U.S. dollar failed to extend its previous gains and edged lower on the day, mainly due to the lack of safe-haven demand in the market backed by the upbeat vital data from the U.S. and China. Whereas, the investors cautiously withdrew their money from the safe-haven asset due to the optimism over U.S. services sector activity data due to be released later in the day. However, the losses in the U.S. dollar became the key factors that kept a barrier on any additional losses in the gold prices as the price of gold is inversely related to the U.S. dollar price.

Entry Price – Buy 1780.33

Stop Loss – 1774.33

Take Profit – 1786.33

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$600/ +$600

Profit & Loss Per Micro Lot = -$60/ +$60

The EUR/JPY pair is trading with a bullish bias at 121.65 after violating the triangle pattern at 121.500 level. Above this, the pair are looking to go further higher until 122 level today. On the EUR side, the European Central Bank’s Governing Council Member and Bank of France Head Francois Villeroy de Galhau spoke dovish on weakened while saying that the coronavirus outbreak has permanently changed European economic policy and the non-conventional tools adopted by the central bank have now become quasi-conventional.

However, the upbeat stocks have overshadowed Galhau’s dovish comments and helped the shared currency stay bid so far. It should be noted that the second wave of the coronavirus outbreak is picking a further pace and could stop the still-nascent global economic recovery as per the ECB.

At the coronavirus front, almost 15 states of the U.S. have reported a record hike in new cases of COVID-19, which has infected approximately 3 million people in the U.S. and killed about 130,000 so far. It is worth mentioning that Texas registered the record high coronavirus figures for seven consecutive days. Moreover, no progress came out of the virus vaccine, which becomes the key factor that capped further gains in the currency pair.

Whereas, the World Health Organization (WHO) reported a record single-day rise of 200,000 in global coronavirus cases whereas Spain imposed lockdown in the north-western region of Galicia, which also exerted some downside pressure on the currency pair.

Technically, the EUR/JPY carries a bullish bias over the 121.500 level. The RSI and MACD are suggesting odds of bullish trend continuation in the EUR/JPY pair, and these can lead the pair towards 122 level. For now, the pair has closed a Doji pattern, suggesting the odds of slight bearish correction in the EUR/JPY pair, but very soon, the bullish trend may trigger again. Let’s stick to the below trade plan.

Entry Price – Buy 121.763

Stop Loss – 121.363

Take Profit – 122.163

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

The EUR/GBP is trading at 0.9020 level, supported by the upward trendline at 0.9020. It seems like the pair is in the consolidation phase on the back of the NFP figure as investors’ focus has shifted to US-related pairs. Yet, the EU and UK fundamentals are influencing the movement in the EUR/GBP pair.

As per the latest statement, the Dutch Prime Minister (PM) Mark Rutte said that the discussions on the European Union (EU) recovery fund could take time, but a compromise is possible in the coming days. However, the hopeful outlook about the potential EU recovery fund deal is expected to support the shared currency as the Netherlands is among the ‘frugal four’ countries, who remain opposed to European Commission plans for the EUR750bn post-coronavirus recovery fund. This brings the bullish bias for the Euro currency.

On the other hand, the European labor market data also supported the Euro. The EU unemployment rate soared to 6.7% in May 2020 vs. 6.6% in April 2020, and these are the figures reported by Eurostat, the statistical office of the European Union. While the unemployment rate slipped to 7.4% vs. 7.6% during the previous month, better figures may help support the EUR/GBP pair.


Technically, the EUR/GBP is supported by a triple bottom support level of 0.9020, and the closing of candles above this level may drive buying until 0.9070 level.

Entry Price – Buy 0.90313 

Stop Loss – 0.89913 

Take Profit – 0.90713

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$496/ +$496

Profit & Loss Per Micro Lot = -$49.6/ +$49.6

The GBP/USD extended its previous bullish moves and dropped to 1.2375 from the 1.2402 level while represented 0.17% losses on the day mainly due to the broad-based U.S. dollar strength due to risk-off market sentiment. On the other hand, the reason for the pair’s downside momentum could also be the fresh tension regarding the EU-UK Brexit talks, which eventually undermined the cable currency and contributed to the currency pair declines.

It is worth recalling that the currency pair was also burdened by the release of the final gross domestic product figure, suggesting that the first quarter’s contraction was deeper than initially estimated. At the data front, the U.K.’s GDP dropped 2.2% in the first quarter of 2020, mainly due to the Covid-19 outbreak, as per the revised estimate released by the Office of National Statistics Tuesday.

Afterward, the UK PM Johnson’s efforts (via infrastructure spending) to balance the worst GDP in 41 years gave some breath to the pair’s downside bias. Whereas, the currency pair buyers might not wait further as the departure talks between Britain and the European Union (E.U.) are not showing any progress. In the meantime, the updates suggest the old neighbors might again fail to deliver any trade deal when they bid adieu on December 31, 2020.

As per the E.U. Chief Brexit negotiator Michel Barnier, the United Kingdom has not completed necessary equivalence assessments by today’s deadline, signaling a shock to the U.K.’s efforts to determine the City’s access to E.U. Markets after Brexit.

Elsewhere, the Conservative Member of Parliament (M.P.) from the UK, Lia Nici, exerted some pressure on the E.U. while handling the controversial fishing access as no deal will finish off the fishing industries some of the key regional economies, as per the U.K. Express.

The GBP/USD is trading at 1.2375 level, and it’s finding immediate support at 1.2358 level. Closing of candles below 1.2404 level can open further room for selling until 38.2% Fibo level of 1.2340. But the bullish breakout of 1.2400 level can drive buying in Cable and can lead its prices towards the next target level of 1.2504 level. Unfortunately, the GBP/USD didn’t trade in line with our forecast and already hit the stop loss.

Entry Price – Sell 1.23654

Stop Loss – 1.24054

Take Profit – 1.23254

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

During the European session, the U.S. ADP department posted advanced NFP data, which showed optimization over the U.S. labor market. Companies in June continued to bring workers back from their pandemic furlough as the national economy slowly came back to life. According to a statement on Wednesday from ADP and Moody’s Analytics, private payrolls rose by 2.369 million for the period, a little weaker than the 2.5 million forecasts from economists seen by Dow Jones. The total realized a drop from the previous month, which marked a tense skyward revision to 3.065 million. ADP originally said May noticed a decline of 2.76 million.

The EUR/USD failed to stop its early-day losing streak and dropped to 1.1220 despite the release of the upbeat German Retail Sales data for May. However, the reason for the declines in the currency pair could be attributed to the broad-based U.S. dollar strength triggered by the uptick in the bond yields. On the other hand, the currency pair buyers also failed to cheer the Upbeat China PMI data possibly due to the continued rise in the coronavirus cases in the U.S.

At the data front, the country’s Retail Sales arrived at +13.9% MoM in May against +3.9% expected and -5.3% last as per the latest data reported by Germany’s Destatis on Wednesday. Surprisingly the Annual German Retail Sales arrived at +3.8% in May against -6.5% seen in April and -3.5% expected.


The EUR/USD is trading below a strong resistance level of 1.1245 level, closing candles below this level, and suggesting chances of selling bias until the 1.1218 level. Continuation of selling trend under 1.1218 level can extend selling unto 1.1195 level today. Alternatively, a bullish breakout of the 1.1245 level can continue buying until 1.1289.

Entry Price – Sell 1.12256 

Stop Loss – 1.12656 

Take Profit – 1.11856

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

The EUR/USD currency pair extended its early-day gains and rose further to 1.12607 level, mainly due to the broad-based U.S. dollar weakness possibly triggered by the encouraging news related to coronavirus vaccine initially provided support to the U.S. stock futures. On the other hand, the rising number of coronavirus cases weighed on the European equities, which undermined the shared currency and became one of the key factors that kept a lid on any additional gains in the pair. 

However, the nervous mood in the European stock futures could be associated with the dovish comments made by the European Central Bank policymaker Francois Villeroy de Galhau on Sunday, which could further undermine the shared currency and push the currency pair lower. However, the politician was saying that the monetary policy needed to remain loose until the central bank’s inflation target of 2% was clearly in sight. 

It is worth mentioning that the International Monetary Fund (IMF) Chief Economist Gita Gopinath said during the interview with Der Spiegel on Monday that the substantial part of the stimulus package must consist of grants rather than loans. As well as, she also said, “In case of more attribution to loans then it will not promote economic recovery”, this statement exerted some downside pressure on the shared currency.

On the positive side, the European Union is expected to welcome travelers from more than a dozen countries not overwhelmed by the coronavirus, unlike the United States, Russia, and dozens of other countries. As of now, the traders seemed failed to cheer this fresh optimism as the European Union was thinking to stop most travelers from the United States, Russia, and dozens of other countries which are considered as too risky because they have not controlled the coronavirus outbreak yet. 

Apart from this, the reason for the risk-off market sentiment could be associated with the fresh report of coronavirus (COVID-19) outbreak, which suggested the pandemic has already crossed approximately half a million lives. Whereas Texas-registered consecutive seven days of above 5,000 cases by the weekend, whereas California’s State Health Department said claims rose by 4,810 to 211,243 total as of June 27. The figures from Los Angeles County rose by near-record of 2,542 to a total of 97,894 by Sunday.

Despite the intensifying fears of coronavirus second wave and geopolitical concerns, the broad-based U.S. dollar failed to maintain its early-day gains and dropped at least for now as the investor’s sentiment swings between hopes for global economic recovery and fears that a fresh wave of coronavirus cases could undermine the recovery. However, the losses in the U.S. dollar kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies fell 0.11% to 97.293 by 12:50 AM ET (5:50 AM GMT).

The EUR/USD is trading in a tight range of 1.1243 – 1.1193, limiting the price action for now. On the lower side, the EUR/USD pair can drop towards 1.1145 level upon the bearish breakout of 1.1193 level, while the bullish breakout of 1.1243 level will allow us to go long. Simultaneously, the RSI and MACD are still in a bearish zone, while the 50 EMA also suggests selling bias. Therefore, we should look for selling trades below 1.1250 levels.  

Entry Price – Buy 1.12575

Stop Loss – 1.12175

Take Profit – 1.12975

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

The USD/JPY currency pair broke its previous session consolidation range near 106.70-75 region and rose above 107.00 level mainly due to the risk-on market sentiment, which undermined the safe-haven Japanese yen and contributed to the currency pair gains. On the flip side, the broad-based US dollar edged lower on the day backed by the lack of safe-haven demand in the market kept a lid on any additional gains in the currency pair. 

It is worth recalling that the investors preferred to invest in safe-haven Japanese yen due to the intensified concerns over a surge in new coronavirus infections that triggered the risk-off market sentiment in the early days. In fact, the World Health Organization (WHO) reported a record increase in global coronavirus cases on Sunday. 

At the coronavirus front, the latest cases of coronavirus were continuously increasing, while Florida reported an increase of 3.7% in cases against a previous 7-day average of 3.5%. Texas, Oklahoma, and California were also showing a sharp rise in cases that initially exerted some downside pressure on the risk sentiment.

Eventually, the risk-off market sentiment was short-lived due to the fresh hopes that the United States seemed unlikely to impose a total lockdown. The fresh optimism further bolstered the risk-on market sentiment that US President Donald Trump recently showed a willingness to step back from imposing sanctions on Chinese diplomats over the Xinjiang issue to safeguard the trade deal.

Despite the intensified fears of the second wave of coronavirus and fear of restriction measures to curb the number of cases, the broad-based US dollar failed to extend its overnight gains and edged lower on the day possibly due to fresh upticks in the US stocks futures which kept the US dollar prices lower and contributed to the currency pair losses. Whereas, the dollar index, which tracks the greenback against a basket of six other currencies, was down 0.1% at 97.493 at 3 AM ET (0700 GMT).

On the other hand, the Dragon Nation recently canceled American meat imports from Tyson plant after workers tested positive for COVID-19, which kept a lid on fresh optimism surrounding the market.


From the technical perspective, the currency pair remains well within a broader trading range held over the past 3-sessions. It will be reasonable to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move for the USD/JPY pair.

The market traders will keep their eye on the US economic docket, which will highlight the only release of Existing Home Sales. However, this data will influence the USD price dynamics and provide some short-term trading impetus ahead.

The USD/JPY is trading at 106.914 level as it continues trading sideways in a wide trading range of 107.620 – 106.630. It failed to break above an immediate resistance level of 107.580. This level is working as resistance for USD/JPY, and the 50 periods EMA is also prolonging strong resistance at 107.580 zones while immediate support lingers nearby 106.600. The USDJPY bearish trend can trigger a sell-off unto the next support level of the 106.017 level today.

Entry Price – Buy 106.962

Stop Loss – 106.562

Take Profit – 107.362

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400 / +$400

Profit & Loss Per Micro Lot = -$400/ +$40